Hermes Group watch sales up 23% in 2011

The Hermès Group has reported total sales revenue of €2,841.2 million (£2, 374m) for 2011, an increase of 18.3% on the previous year both at current and constant exchange rates.

The French luxury group said that its target for the year had been exceeded, thanks to “sustained activity in the company-owned stores” in Q4, while all sectors showed an increased in sales “thanks to ongoing innovation and creativity”.

In total, Hermes watch sales increased 23%, from €112.6 million (£94m) in 2010 to €138.7 million (£115.8m) at the end of 2011, while its jewellery sales grew by 23%.

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Hermès’ own-store sales increased 19%, while its wholesale distribution segment grew by 15% with 13 new stores opened, four new concession spaces and the renovation or extension of eight other concessions.

Sales growth was driven by America, where it increased 26%, and non-Japan Asia, which grew by 29% off the back of six new store openings.

Hermès also expanded its stake in India, opening the first lucury goods store outside of a shopping mall in central Mumbai.

Sales in Europe rose by 16%, while France alone, with the new store opening on the rue de Sèvres, enjoyed sales of €494.9 million (£413m).

Hermès said that its long-term strategy based will focus on maintaining control over its know-how, while distribution networks will be pursued.

The group plans to develop its production capacity and its distribution network, with the opening or renovation of about 15 branches.

In 2012 Hermès will celebrate its theme for the year: ‘The gift of time’.